Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Jacobs Solutions Inc. (J)

Company Dividend Discount ModelIndustry: Software - ServicesSector: Technology

Valuation Snapshot

Stable Growth$19.85 - $29.90$24.60
Multi-Stage$40.26 - $44.25$42.22
Blended Fair Value$33.41
Current Price$147.86
Upside-77.41%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS9.34%0.00%1.261.171.050.950.920.800.750.670.450.05
YoY Growth--7.18%11.18%10.76%3.90%13.99%7.77%10.94%50.98%826.29%0.00%
Dividend Yield--0.85%0.88%0.98%0.96%0.80%0.89%1.01%1.41%0.82%0.10%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)284.44
(-) Cash Dividends Paid (M)153.03
(=) Cash Retained (M)131.41
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)56.8935.5521.33
Cash Retained (M)131.41131.41131.41
(-) Cash Required (M)-56.89-35.55-21.33
(=) Excess Retained (M)74.5295.86110.08
(/) Shares Outstanding (M)121.81121.81121.81
(=) Excess Retained per Share0.610.790.90
LTM Dividend per Share1.261.261.26
(+) Excess Retained per Share0.610.790.90
(=) Adjusted Dividend1.872.042.16
WACC / Discount Rate7.22%7.22%7.22%
Growth Rate-2.00%-1.00%0.00%
Fair Value$19.85$24.60$29.90
Upside / Downside-86.58%-83.37%-79.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)284.44281.59278.78275.99273.23270.50278.61
Payout Ratio53.80%61.04%68.28%75.52%82.76%90.00%92.50%
Projected Dividends (M)153.03171.88190.35208.43226.12243.45257.72

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.22%7.22%7.22%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)158.68160.30161.92
Year 2 PV (M)162.24165.56168.93
Year 3 PV (M)164.00169.08174.25
Year 4 PV (M)164.27171.07178.09
Year 5 PV (M)163.27171.77180.62
PV of Terminal Value (M)4,091.954,305.034,526.89
Equity Value (M)4,904.415,142.815,390.70
Shares Outstanding (M)121.81121.81121.81
Fair Value$40.26$42.22$44.25
Upside / Downside-72.77%-71.45%-70.07%

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